BILL NUMBER: AB 2562	CHAPTERED  09/29/00

	CHAPTER   922
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE ASSEMBLY   AUGUST 25, 2000
	PASSED THE SENATE   AUGUST 23, 2000
	AMENDED IN SENATE   JUNE 29, 2000
	AMENDED IN ASSEMBLY   MAY 16, 2000
	AMENDED IN ASSEMBLY   MARCH 28, 2000

INTRODUCED BY   Assembly Member Brewer
   (Coauthor:  Assembly Member Bock)

                        FEBRUARY 24, 2000

   An act to add Sections 276.2 and 276.3 to, and to repeal and add
Section 276 of, the Revenue and Taxation Code, relating to taxation,
to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2562, Brewer.  Property taxation:  disabled veterans'
exemption.
   Existing property tax law provides, pursuant to the authorization
of the California Constitution, for the exemption from property
taxation of specified amounts of the assessed value of the home of a
disabled veteran, or a veteran's spouse in the case in which the
person has, as a result of a service-connected disease or injury,
died while on active duty in military service.  Existing property tax
law generally requires a claiming affidavit for the disabled
veterans' exemption to be filed no later than the February 15
following the relevant lien date.  It also provides for partial
exemptions, each applicable as provided and contingent upon an
affidavit being no later than the December 10 following the lien
date, of the lesser of either certain amounts of assessed value or
80% of the full value of the real property to which the exemption is
to be applied.
   This bill would revise and recast current partial exemption
provisions to require the cancellation or refund of either 90% or 85%
of those taxes, including any interest and penalties, levied on that
portion of the property's assessed value that would have been
exempted under a timely exemption claim, depending upon whether a
claim is filed either within a specified period ending with the
December 10 following the lien date or after that period. This bill
would also make technical, nonsubstantive changes with respect to the
application of the exemption to the 2nd installment of taxes on the
secured property tax roll.
   This bill would, in the case in which the subject real property
was acquired after the property tax lien date, also require the
cancellation or refund of those taxes levied on the full exemption
amount, provided an appropriate affidavit is filed on or before the
next property tax lien date.
   This bill would also provide for the termination of a disabled
veterans' exemption upon the subject property being transferred to a
3rd party that is not eligible for that exemption.
   Section 2229 of the Revenue and Taxation Code requires the
Legislature to reimburse local agencies annually for certain property
tax revenues lost as a result of any exemption or classification of
property for purposes of ad valorem property taxation.
   This bill would provide that, notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for property tax revenues lost by
them pursuant to the bill.
   This bill would take effect immediately as a tax levy.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 276 of the Revenue and Taxation Code is
repealed.
  SEC. 2.  Section 276 is added to the Revenue and Taxation Code, to
read:
   276.  (a) Except as otherwise provided by subdivision (b), for
property for which the disabled veterans' exemption described in
Section 205.5 was available, but for which a timely claim was not
filed, a partial exemption shall be applied in accordance with
whichever of the following is applicable:
   (1) Ninety percent of any tax, including any interest or penalty
thereon, levied upon that portion of the assessed value of the
property that would have been exempt under a timely and appropriate
claim shall be canceled or refunded, provided that an appropriate
claim for exemption is filed after 5 p.m. on February 15 of the
calendar year in which the fiscal year begins but on or before the
following December 10.
   (2) If an appropriate claim for exemption is filed after the time
period specified in paragraph (1), 85 percent of that portion of any
tax, including any interest or penalty thereon, that was levied upon
that portion of the assessed value of the property that would have
been exempt under a timely and appropriate claim, shall be canceled
or refunded.
   (b) If a late-filed claim for the sixty thousand dollar ($60,000)
exemption or the one hundred fifty thousand dollar ($150,000)
exemption is filed in conjunction with a timely filed claim for the
forty thousand dollar ($40,000) or one hundred thousand dollar
($100,000) exemption, the amount of any exemption allowed under the
late-filed claim under subdivision (a) shall be determined on the
basis of that portion of the exemption amount, otherwise available
under subdivision (a), that exceeds forty thousand dollars ($40,000)
or one hundred thousand dollars ($100,000), as applicable.
   (c) For those claims filed pursuant to subdivision (a) after
November 15, the exemption under that subdivision may be applied to
the second installment.  If that exemption is so applied, the first
installment is still delinquent on December 10, and is subject to
delinquent penalties provided for in this division if that
installment is not timely paid.  A refund shall be made to the
taxpayer upon a claim submitted to the auditor if the exemption is
applied to the second installment and either of the following is
true:
   (1) Both installments are paid on or before December 10.
   (2) The reduction in taxes resulting from the exemption exceeds
the amount of taxes due on the second installment.
  SEC. 3.  Section 276.2 is added to the Revenue and Taxation Code,
to read:
   276.2.  If the disabled veterans' exemption as described in
Section 205.5 would have been available for a property, but for that
property being acquired by a person eligible for that exemption only
after the lien date, and an appropriate application for that
exemption is filed on or before the lien date in the calendar year
next following the calendar year in which the property was acquired,
there shall be canceled or refunded the amount of any taxes,
including any interest or penalties thereon, levied on that portion
of the assessed value of the property that would have been exempt
under a timely and appropriate application.
  SEC. 4.  Section 276.3 is added to the Revenue and Taxation Code,
to read:
   276.3.  In the event that property receiving a disabled veterans'
exemption as described in Section 205.5 is sold or otherwise
transferred to a person who is not eligible for that exemption, the
exemption shall cease to apply on the date of that sale or transfer.

  SEC. 5.  Notwithstanding Section 2229 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any property tax revenues lost by it
pursuant to this act.
  SEC. 6.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
